US Trade Deficit Hits Record, Driven by Imports

The U.S. trade deficit reached a record $140.5 billion in March, a 14% increase from the previous month, as businesses and consumers rushed to import goods before tariffs imposed by President Donald Trump took effect. Imports surged by 4.4% to $419 billion, led by an unprecedented 71% rise in pharmaceutical shipments, while exports edged up just 0.2% to $278.5 billion. The spike was driven by stockpiling of pharmaceuticals, vehicles, and capital equipment, causing the U.S. trade gap with Ireland to surpass China for the month. Economists say this surge contributed to supply chain disruptions and drove first-quarter GDP into contraction as net exports declined. The record deficit exceeded forecasts, intensifying concerns over rising consumer prices, a weakening dollar, and broader economic risks. Analysts anticipate that the trade balance may normalize after the stockpiling subsides, but long-term impacts remain unclear.